Indus Towers receives Rs 28 Bn from Vodafone's share placement

Indus Towers Limited (Indus Towers) has completed the placement of 79.2 million shares, which is 3.0 percent of Indus' share capital, according to a statement released by Vodafone Group Plc (Vodafone). Vodafone announced on Friday that the placement, which was finished on December 5, 2024, raised Rs 28.0 billion (USD 330 million).

Repayment of Loans and Purchase of Stake in Vi

Of the revenues, Rs 8.9 billion (USD 105 million) was utilised to pay transaction fees and settle outstanding debts owed to Vodafone's current lenders that were secured by the company's Indian assets. By purchasing 1.7 billion equity shares in Vodafone Idea Limited (Vi) with the remaining Rs 19.1 billion (USD 225 million), Vodafone increased its ownership of Vi from 22.56 percent to 24.39 percent. According to Vodafone, Omega Telecom Holdings Private Limited and Usha Martin Telematics Limited were the acquiring companies in Vi. 

Vodafone was able to fulfil its financial commitments to Indus under the Security Arrangements by using the money to pay its Master Service Agreement (MSA) debts to Indus Towers.
"Vi has paid Indus outstanding Master Service Agreement (MSA) debts using the money raised from this capital raise. Following this, Vodafone declared on January 10, 2025, that it had fully fulfilled its responsibilities to Indus under the Security Arrangements.

The official release states that Indus had security over the remaining proceeds from the placement (after Vodafone's outstanding borrowings were repaid) in order to guarantee obligations from Vi to Indus under the MSAs, as per the terms of the security arrangements between the two companies.